The Lessee Should Classify a Non-Cancellable Long-Term Lease as a Capital

Multiple Choice

The lessee should classify a non-cancellable long-term lease as a capital lease if

A) there is a purchase option at the end of the lease term
B) the present value of the minimum lease payments is at least 75% of the fair value of the leased property
C) the present value of the minimum lease payments is at least 90% of the fair market value of the leased property to the lessor
D) the estimated residual value of the leased property at the termination of the lease is equal to 90% of the lessee's guaranteed residual value